Salter Brothers puts Hydro Majestic Hotel up for sale
Melbourne-based investment manager Salter Brothers is testing the market for its Blue Mountains landmark, the Hydro Majestic Hotel, fielding interest from both domestic and international buyers just three years after adding the property to its portfolio.
Salter Brothers acquired the art deco-style hotel in 2023 as part of a five-property portfolio deal valued at more than $100 million. The Hydro Majestic is now being brought to market through hotel specialist HTL Property, with an expressions of interest campaign running until 24 September.
Opened in 1904 by Mark Foy as Australia's first hydropathic health retreat, the 84-room hotel sits roughly 90 minutes from Sydney overlooking the Megalong Valley. Its heritage features include a domed lobby ceiling and three dining venues: the Watergarden Restaurant, known for high tea, alongside Salon du The and the Boiler House Cafe. The 120-year-old property has hosted notable early-20th-century guests including Edmund Barton and Sir Arthur Conan Doyle.
HTL Property is marketing the asset on its growth potential, pointing to a hotel license that supports gaming as well as underused land suited to a conference centre and the potential to roughly double the current room count.
HTL Property APAC managing director of capital markets Mark Durran said the hotel already performs strongly but has considerable room to grow. "While already a powerful cashflowing business, The Hydro Majestic offers significant upside," he said.
"With the prospect of adding an additional 91 suites, delivering an approved state-of-the-art conference facility, activating currently inactive surplus land or reinstating the Roadhouse bar operation, the scope to drive incremental visitation is pronounced. Genuine additional revenue levers such as these support the opportunity to further enhance the scale and value of this iconic Australian hotel asset."
HTL Property national accommodation managing director Andrew Jackson said the size of the landholding gave scope for longer-term evolution of the site.
"There is an opportunity to explore how the broader destination could be enhanced over time, bringing together accommodation, dining, events and tourism experiences in a way that builds upon the natural setting of the Hydro Majestic."
Salter Brothers director of hotels Steven Skarott described the sale as the next chapter for a standout asset. "Its rich history, substantial landholding and stunning position overlooking the Megalong Valley make it unlike any other hotel in the Blue Mountains," he said.
"Since acquiring the property, Salter Brothers has been proud to contribute to its ongoing story and strengthen its position as a leading Blue Mountains destination. With established operations and multiple value-add opportunities, we believe the hotel is well placed for a new owner to build on these strong foundations and take the property into its next chapter."
Jonathan Jackson, 19th August 2026
